Sunday, November 06, 2011

Thoughts on a Sunday

The sellers of 20 Sage Terrace, just around the corner from the Greenacres Elementary School and a 12 minute walk to the train and shops, are auctioning their beautifully renovated home.

Are there sales happening in Scarsdale? Yes. But regardless what you are hearing, it is slow and painful. And with the current economic climate, there are going to be more acts of desperation in the future.

Speaking of our current economic climate, if you go Gawker, it seems that happy days are here again. Do not believe the hype. As this NYT articles indicates people are holding onto to their cash.

Purely anecdotal, but the model during a down real estate market is that the people with the cash jump in to start cherry picking for bargains. That is happening but I do know of people with the big money are sitting this one out. It is not due to a lack of bargains, but the fact is this economic climate is not the most pleasant for real estate investing. With the climate as chaotic as this, it might be best to stay as liquid as possible instead of locking it up in an asset.

The term "work out" is being thrown a lot these days. The big players who are barely holding onto to their properties are in talks with their lenders. It is in everyone's best interest to keep the peace and figure out a solution that does not involve turning in the keys.

Occupy Wall Street. I empathize their cause and outrage. However their approach is quite flawed.

First of all, they are too late because there is no money out there. This whole debacle could have been avoided a long time ago if these people had organized and began putting in the economic fail safes in place. Right now they are just racking overtime for NYPD and hurting small businesses.